Mainland stocks closed slightly down on Friday, but ended the week near their highest level in 10 months, as upbeat economic data lifted sentiment and investors largely looked past US tariff concerns, while Hong Kong shares declined.

The benchmark Hang Seng Index ended trading for the day down 222 points, or 0.89 percent, at 24,858 but is up 1.2 percent for the week.

The Hang Seng China Enterprises Index fell 0.96 percent to 8,895 while the Hang Seng Tech Index fell 1.56 percent to 5,460.

Tech majors were down 1.6 percent while materials shares were up 2.5 percent.

Shares of semiconductors dropped nearly two percent, weighed by an eight percent fall in China's largest chipmaker SMIC after it reported weaker-than-expected second-quarter earnings.

On the mainland, the benchmark Shanghai Composite Index ended down 0.12 percent at 3,635 while the Shenzhen Component Index was 0.26 percent lower at 11,128.

Their combined turnover was 1.71 trillion yuan, down from 1.83 trillion yuan on Thursday.

Shares related to the high-speed railway, mega-hydropower and electric power industries led gains while stocks related to the e-commerce and semiconductor sectors suffered major losses.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 0.38 percent to close at 2,333.

China stocks have steadily climbed this week, supported by upbeat trade and service activity data.

"The market may be underpricing the risk of near-term deterioration in the US-China relationship," said Morgan Stanley strategists led by Laura Wang.

The strategists urged investors to monitor developments in trade tensions and flagged the upcoming National People' Congress Standing Committee meeting and second-quarter earnings season as potential catalysts for market direction.

In the interim, they prefer mainland-listed A-shares over Hong Kong-listed H-shares, citing stronger relative performance during periods of global market volatility.

China faces an August 12 deadline to reach a durable tariff agreement with the Trump administration. (Reuters/Xinhua)